Distribution Network Model for Blood Donation

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Distribution Network Model for vitalant Blood Donation

Blood Systems, Inc., now vitalant, is the second-largest provider of blood and blood products in the U.S.

Project Objectives/Challenges

Blood Systems, Inc. was facing extreme pricing pressures from customers and a tremendous imbalance where products were utilized versus where product was collected. The company needed to work in a more integrated fashion with its affiliates to better leverage capacity and reduce costs. They sought a strategic distribution network analysis to reduce costs while maintaining all regulatory, temperature control and time sensitivity requirements.

What Sedlak Did

Conducted a study of distribution processes across multiple business regions and four affiliate organizations that leveraged leading distribution network design tools to analyze over 30 distribution network scenarios.

Performed detailed analysis that consisted of cost/service trade-offs, inter-region transfers, risk mitigation approaches and transportation processes.

Recommended a solution for a future network model based on current baseline data and growth to support long-term business objectives.

Results

Optimized distribution network reduced overall costs by 30% while maintaining service levels.

Quantified costs of emergency/rush shipments.

Highlighted inefficient distribution operations to consider for closure based on changing demand and distribution requirements.

Supported alignment of corporate organization and four affiliate organizations to the new integrated distribution approaches.

Developed a roadmap to realize value as part of larger corporate vision and initiatives.

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